The Mexican government has approved a fiscal stimulus that could boost the output of pemex by as much as 400,000 barrels per day, oil price website today platts reported, citing Mexican finance minister carlos urzua.
The measure involves credit agreements with Hong Kong Banks HSBC, jpmorgan chase and mizuho securities.
Under the new terms, the $5.5bn loan would be extended for two years and about $2.5bn of existing debt would be refinanced, the official said.
The money will be used to continue producing oil from aging fields that are now depressed.
To that end, the older fields involved in the measure will be transferred to production-sharing agreements introduced by the former Mexican government as part of sweeping energy reforms passed in 2014.
Mexico has been trying to reverse a steady decline in oil production caused by underinvestment and a decline in demand for new discoveries.
The previous government tried to solve the problem by breaking Pemex's monopoly in the market and inviting foreign companies to explore for oil and gas offshore.
At the same time, however, the new government is as eager to boost output as its predecessor: it has promised to pump 2.5m b/d by the end of its term, close to its 2013 average of 2.52m b/d.
The new government also announced a combination of debt refinancing and tax cuts to provide a $3.6 billion lifeline to heavily indebted pemex.
The company produced an average of 1.813 million barrels per day in 2018, according to pemex.
That compares with an average of 2.522 million BPD in 2013 and 1.948 million BPD in 2017.